updated 05:25 pm EDT, Wed April 9, 2008
MS Response to Yahoo Goog
Microsoft tonight quickly responded to Yahoo's Google ad trial, attacking the deal as a potential move towards a monopoly. The Windows developer argues that any more permanent agreement would place "over 90%" of all search ads under Google's control and would shut out attempts by other firms to offer alternatives. Microsoft says that its own proposed takeover would be more beneficial by establishing a second major search ad provider.
"This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo," Microsoft claims. "We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice."
Yahoo has just recently rebuffed some of these arguments in a letter rejecting Microsoft's ultimatum. The former company's earlier statement accuses Microsoft of ignoring changes in share value that make Yahoo more worthwhile and dishonestly claiming that takeover offers were made as a friendly gesture.